Question

During the listing appointment the seller told the broker that he was a Catholic and would not sell the property to anyone who was not a Catholic. The broker should:

a) take the listing but not make any promises selling to a Catholic.
b) not take the listing.
c) get the request in writing.
d) take the listing but tell the seller that he will have to get a special permit from the home owners association to sell to a Catholic.

Answer 1

The broker should ethically and legally refuse to take the listing due to the seller's discriminatory request based on religion, which is against the Fair Housing Act. Engaging in such practices contributes to housing discrimination, which has a historical precedent of contributing to systemic injustice. The correct option is B.

Step-by-step explanation:

The student's question relates to the ethical and legal obligations of a real estate broker when faced with a seller's discriminatory request. Since housing discrimination based on religion is prohibited under the Fair Housing Act, which is part of the Civil Rights Act of 1968, the broker must adhere to federal law and not take the listing if the seller insists on this discriminatory condition.

Recommending that the broker not take the listing is the only appropriate action, as it aligns with legal and ethical standards and ensures that the broker does not participate in discriminatory practices. Historically, even after the Supreme Court found restrictive covenants unconstitutional in 1948, other tactics emerged that were designed to maintain housing segregation, such as realtors refusing to sell houses in certain neighborhoods to ethnic minorities, leading to institutionalized housing discrimination.

Banks and lenders also contributed to this through practices such as mortgage discrimination. The broker in this scenario must not contribute to such patterns of discrimination and should stand firmly against the seller's request.